| Home Buyer Tax Credit of 2010
EXTENDED AND EXPANED on November 8, 2009 - Home
Buyer Tax Credit of 2010
New Legislation
New legislation, the Worker, Homeownership
and Business Assistance Act of 2009, which
was signed into law on Nov. 6, 2009, extends and expands
the first-time homebuyer credit allowed by previous
Acts. The new law:
• Extends
deadlines for purchasing and closing on a home.
• Authorizes
the credit for long-time homeowners buying a replacement
principal residence.
• Raises
the income limitations for homeowners claiming the
credit.
Under the new law, an eligible taxpayer must buy,
or enter into a binding contract to buy, a principal
residence on or before April 30, 2010 and close on
the home by June 30, 2010. For qualifying purchases
in 2010, taxpayers have the option of claiming the
credit on either their 2009 or 2010 return.
Summary of Tax eligibilty from NAR.
| FEATURE | Jan 1 – Nov 30, 2009
Rules As Enacted February 2009 | Nov 7, 2009 – Apr 30, 2010
Rules As Enacted November 2009 |
First-time Buyer –
Amount of Credit |
$8,000 ($4,000 married
filing separate) |
$8,000 ($4,000 married
fi ling separate) |
First-time Buyer –
Defi nition for Eligibility |
May not have had an
interest in a principal
residence for 3 years
prior to purchase |
Same |
Current Homeowner –
Amount of Credit |
No Provision |
$6,500 ($3,250 married
fi ling separate) |
Effective Date –
Current Owner |
No Provision |
November 7, 2009 |
Current Homeowner –
Defi nition for Eligibility |
No Provision |
Must have used the
home sold or being sold
as a principal residence
consecutively for 5 of the
previous 8 years |
| Termination of Credit* | Purchases after November 30, 2009
(Becomes April 30, 2010
on November 7, 2009)
|
Purchases after April 30, 2010
* April 30, 2011 for qualified Active Military, Foreign Service & Intelleigence |
| Binding Contract Rule |
None |
So long as a written
binding contract to
purchase is in effect
on April 30, 2010, the
purchaser will have until
July 1, 2010 to close |
Income Limits
(Increased
income limits
are
effective as of
Nov 7,
2009) |
$75,000 – single
$150,000 – married
Additional $20,000
phase out |
$125,000 – single
$225,000 – married
Additional $20,000
phase out |
Limitation on Cost of
Purchased Home |
None |
$800,000
November 7, 2009 |
Purchase by a
Dependent |
No Provision |
Ineligible
November 7, 2009 |
| Anti-fraud Rule |
None |
Purchaser must attach
documentation of
purchase to tax return
|
Print a copy of this information
This information publish February 27, 2009 - http://www.irs.gov/taxtopics/tc611.html . For more detailed information on qualifying for and claiming the first-time homebuyer credit, refer to additional topics on the
IRS Website at www.irs.gov. Podcast of Audio Interview on Tax Credit | Download Tax Form 5404
Contact CENTURY 21 Today, Inc. for more information.
|
